Cantor Fitzgerald
Pulled back from SPACs in 2023
Fees Earned
$500.0M
SPACs Underwritten
45
Bankrupt SPACs
2
Bankruptcy Rate
4.4%
Overview
Cantor Fitzgerald carved out a niche as a mid-tier SPAC underwriter, handling deals that larger banks wouldn't touch. The firm earned approximately $500 million in SPAC fees, underwriting many small and micro-cap SPACs that had even higher failure rates than their larger counterparts. Cantor continued SPAC activity longer than most banks, only pulling back when deal flow dried up entirely.
Average Client Return
Average return for investors who held SPAC-merged companies underwritten by Cantor Fitzgerald. The bank collected its fees at IPO regardless of subsequent performance.
Notable Deals
The Fee Structure Problem
SPAC underwriters like Cantor Fitzgerald typically earned 2% of the IPO proceeds upfront, with an additional 3.5% deferred fee paid at deal completion. On 45 SPAC IPOs, this generated approximately $500.0M in fees.
Crucially, these fees were earned regardless of whether the SPAC found a good target or whether investors made money. The deferred fee was paid from the trust at merger completion — meaning the bank had every incentive to push mergers through, even with subpar targets.